The Japanese Financial Services Agency plans to revise its regulations concerning cryptocurrencies, classifying them as financial products. The changes are expected to take effect by early 2026.
New Classification of Cryptocurrencies
According to a report from Nikkei, Japan's Financial Services Agency (FSA) intends to reclassify cryptocurrencies as financial products rather than under the category of bonds and stocks. The revised regulation is expected to be implemented by early 2026, with the agency preparing to submit the bill to parliament for approval.
Cryptocurrency Market Prospects
Experts believe that the new classification may boost the growth in the number of cryptocurrency users in Japan, opening up new opportunities in national and international markets. By the end of 2024, Japan had 11.8 million cryptocurrency users, with 7 million actively engaged in the market. This number is expected to rise with the implementation of new regulations.
Current Cryptocurrency Market Data
As of the time of publication, the cryptocurrency market cap stood at $2.61 trillion, down by 5.21% over the week and more than 18% over the quarter. The fear and greed index has dropped to 24, indicating market caution. According to CoinMarketCap, the intraday gainers include Four, ZCash, Flare, Tether Gold, and Toncoin, while losers are PI, Movement, Berachain, Hedera, Sei, and Cronos.
The revision of cryptocurrency regulations in Japan could be a crucial step in strengthening and developing the crypto market. These changes may also help reduce tax burdens and combat criminal activities related to crypto assets.
